Exports increase producer surplus but decrease consumer surplus and total surplus.

Name: Exports increase producer surplus but decrease consumer surplus and total surplus.
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Question

Quizplus · Accepted Answer

Exports increase producer surplus because producers can sell more goods at higher prices, but they do not necessarily decrease consumer surplus or total surplus. In fact, exports can increase total surplus by allowing goods to move from countries where they are produced at lower cost to countries where they are valued more highly.

Exports Increase Producer Surplus but Decrease Consumer Surplus and Total